BACKGROUND

In May 2016, The Village Board awarded a one-year contract to Schroeder & Schroeder, Inc. of Skokie, IL for concrete "flatwork".  The bids were solicited through the Municipal Partnering Initiative (MPI).  The Village participates in several MPI projects on an annual basis.  The bid documents allowed for a one-year contract with the ability to extend the contract for two one-year extensions.  This year the MPI approved the first of these two optional one-year extensions. The initial contract is set to expire in May of 2017.  Concrete "flatwork" generally consists of concrete road, curb, sidewalk, and driveway apron repairs.  This contract enables various Public Works Units to have concrete services performed for restorative services that are required, due to maintenance related excavations and normal wear.

The contractor has offered to extend the contract for 8 months with a 0.6% increase in price.  This is allowed for within the MPI contract specifications.  The term of the extension would begin in May of 2017 and conclude in January of 2018.

If this contract is rebid, the chances for significant unit price increases are high, as they are primarily labor based and hourly rates have increased by several percent over the last several years.  There is also a high degree of possibility that concrete unit prices will increase this upcoming season as well.  While the total costs are dependent on the actual quantities used, Public Works expenditures will not exceed the total budgeted amount of $334,120.  The bidder has been determined to be responsible and the contract extension meets specifications.

RECOMMENDATION

It is recommended that the Village Board award a 8-month contract extension to Schroeder & Schroeder, Inc. of Skokie, Illinois and authorize Staff to execute the necessary documents.  The contract extension would be with a 0.6% increase to the original unit prices.